Emerging Markets Evening Roundup: FX Action; Taiwan Semi’s Apple Bet

By Ben Levisohn

Its the end of the day–and I see a lot of green on my FactSet screen.

The S&P 500 rallied 0.6%–and Latin America followed suit. Brazil’s Bovespa stock index gained 0.7%, after its central bank left rates on hold–and left many market observers speculating that they could stay put for the rest of 2013–while Mexico’s IPC rose 0.2%, and Chile’s IPSA stock index gain 0.35%. Only Peru and Colombia finished in the red.

The real action, however, was in currencies. The dollar fell 1.05% against the Hungarian forint, 0.7% against the Turkish lira and 0.6% versus the Chilean peso. Those moves look tiny compare to what happened to the yen. It dropped 3.1% against the forint, 1.7% versus the Turkish lira and 1.6% against the Chilean peso.

Want more evidence of the action in FX? Here’s a chart courtesy of Miller Tabak’s Andrew Wilkinson, which shows the recent move of the euro versus the Swiss Franc (the euro is getting stronger):

Wilkinson says, “The chart below looks like a bull run in an illiquid emerging market and illustrates the sea change in sentiment towards the potential threats facing the eurozone.”

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